Tips for Encouraging Your Children’s Financial Success

Jan 14, 2014 | Financial Services, Teaching Kids About Money

It’s no secret that today’s economy presents challenges to even the most financially responsible families. As a parent, you want to provide for your children while also setting a good example for their future success. One of the best ways to encourage your kids to build financial security is to start talking to them about money early. Remember that if your kids are old enough to receive an allowance, they’re old enough to learn good financial habits.

Money Savvy: Building Good Habits
Teaching your kids good habits when it comes to handling and managing their money is essential. Financial experts say that when it comes to teaching kids how to handle money, getting an early start is key. One of the easiest ways to tackle difficult money conversations is to decide what financial topics you’ll talk about with your kids at any given time. Use these guidelines as you set the agenda for money talks with your kids.

When your children are in elementary school, start teaching them good money habits by taking them along with you when you go to the bank, pay bills and shop for groceries. Talk to your kids about how much monthly expenses cost so that they develop a strong understanding of the concept that nothing material comes free.

When your children are in middle school or junior high, start talking to them about long-term savings. If you’ve already opened a savings account for your kids, encourage them to set a savings goal and keep a record of their progress. If you haven’t opened savings accounts for your kids yet, take them to the bank as soon as you can.

When your children are in high school, set aside a portion of their allowance to pay for costs such as food and clothing. Ask your teens to manage this money so that they have a concrete idea of what it feels like to manage needs and wants in the adult world.

Money Savvy: Avoiding Financial Pitfalls
Educating your kids about money is about more than teaching them how to spend and save wisely. It’s also about giving your kids the skills they will need to manage tough money situations in the future. If your family is currently having a financial struggle, don’t try to hide this from your kids. Talk to them in a straightforward manner about why you’re struggling and what you’ll do to get back on track. A little honesty about your own finances goes a long way towards teaching your kids responsible money management.

We all struggle with money from time to time. Whether you are unable to pay a big bill this month or need a little extra money for the holidays, Minute Loan Center can help you with a cash advance.